Critical Infrastructure Technologies Ltd. (CSE: CTTT) (OTC: CITLF) (FRA: X9V) announced it has received finance approval for the debt component to acquire 100% of the shares of a Western Australian precision engineering and manufacturing company with strong ties to the defence and mining sector. The acquisition, expected to close on or before May 31, 2026, represents a strategic move to establish sovereign manufacturing capability in Australia and vertically integrate production of its Nexus platform and future defence technologies.
The purchase price is AUD $5,775,000 on completion, with deferred payments of AUD $962,500 on both the first and second anniversaries. The target company reported revenue of AUD $7.5 million for FY2025 and EBITDA of AUD $1.9 million, with projections of AUD $8.6 million in revenue and AUD $2.2 million in EBITDA for FY2026. Revenue and EBITDA are expected to double within the next two to three years.
CiTech, a developer of autonomous, high-capacity mobile communications and security platforms, stated that the acquisition adds a profitable and well-established engineering and fabrication business, providing an immediate earnings base while strengthening the Company's ability to scale production of its Nexus communications platforms. Strategic benefits include immediate sovereign manufacturing capability in Western Australia, vertical integration of fabrication and engineering operations, faster prototyping, production, and deployment of Nexus platforms, access to a highly skilled workforce and advanced fabrication infrastructure, and enhanced capability to support defence, mining, and critical infrastructure customers.
CEO Brenton Scott commented, “Being able to settle the acquisition represents a significant step in CiTech’s growth strategy. This acquisition provides immediate revenue and earnings while delivering the manufacturing capability required to scale production of our Nexus platforms and support increasing international demand.” He added, “Importantly, it strengthens sovereign Australian defence manufacturing capability and positions CiTech to participate in major allied supply chains.”
The acquisition aligns with CiTech's focus on the mining, defence, border security, and emergency services sectors for its first product release, the Nexus 16, which provides critical mobile telecommunications. The Company's self-deploying platform uses patented technologies to address limitations in tower strength and rapid deployment. CiTech has completed research and development and is commercializing its products. More information is available at www.citech.com.au.
This news release contains forward-looking information within the meaning of applicable securities laws, including expectations regarding revenue, EBITDA, and growth projections. Such information is based on assumptions and is subject to risks and uncertainties that could cause actual results to differ materially.
